x
Breaking News
More () »

Did inflation impact East Tennessee small businesses in 2023?

Some small businesses said rising prices did not impact them in 2023. However, some say it did.

KNOXVILLE, Tenn. — In January, the rate of inflation on airfares was up by around 25.6%, compared to January 2022. The rate of inflation for electricity was up more than 14%. But as the year has gone on, the rate of inflation has decreased.

The rate of inflation on airfare costs went up by around 3% and inflation on the price of meat and eggs went up by around 0.1%, according to NBC News.

According to the Bureau of Labor Statistics, the Consumer Price Index for all urban consumers was around $307 in Nov. 2023, — up by around $10 compared to the previous year. From Nov. 2021 to Nov. 2022, the price went up by $20, showing that the rate at which prices are rising may be slowing down.

Celia McCall has worked at Rala for about a year, a retail store in the Old City area of Knoxville. It opened in 2010 and sells handmade and custom art, candles, and t-shirts from local artists. She said it was a busy holiday season for the store.

And even though the rate of inflation fluctuated throughout the year, it didn't impact Rala. 

“I think there is always an increase as time goes on. But, I guess you could say with support, we haven’t really seen a hit from it," she said .“We try and keep everything consistent and fair prices. If anything has gone up, it's as small as we can.”

She also said that mostly, prices for Rala customers haven’t changed. However, that’s not the case for all small businesses.

Carlos Allavena-Vitelli is the president of the Latino Chamber of Commerce and he said that out of the small businesses he works with, have felt the strain of inflation.

“The business slowed down 10% to 15% this year — restaurants and grocery stores," he said.

However, he said although the rate of inflation can impact customers, it’s still important to keep shopping at local businesses because they depend on the community to survive.

   

Before You Leave, Check This Out